Elon Musk Petitions Legal Action to Halt OpenAI’s Transition to Profit-making Entity, Reports Investing.com

Elon Musk, the CEO of Tesla, has taken legal action to prevent OpenAI, a company he co-founded, from transitioning into a profit-making business, according to recently revealed legal documents. Musk’s request for a federal court injunction also implies potential antitrust issues with the AI start-up.

Lawyers for Musk and his AI venture, xAI, have requested a preliminary injunction to halt OpenAI’s transition, and to ensure the start-up does not restrict its investors from funding its rivals.

This development potentially intensifies the legal dispute between Musk and OpenAI, which has seen Musk institute several lawsuits against the company over its alleged departure from its non-profit mission.

Musk has also claimed to have been deceived out of the $44 million he contributed to OpenAI. Musk co-founded the company but parted ways in 2018 due to differences over its objectives.

Recent news indicates that OpenAI is considering transitioning a portion of its operations into a profit-oriented model, thereby capitalizing on the success of its popular ChatGPT AI model.

OpenAI recently secured a $1.5 billion investment from Japan’s Softbank through a tender offer for shares owned by OpenAI employees. However, it has been reported that OpenAI has been discouraging its investors from investing in its rivals.

Microsoft Corporation is one of OpenAI’s most significant investors, and other tech giants, including AI leader NVIDIA Corporation, have also participated in recent funding rounds.

The article is intended to provide valuable insights for those with an interest in investing, while also providing a broader understanding of the evolving AI industry landscape.

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